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Check Before You Invest : Parag Milk Foods Ltd

BSE: 539889 NSE: PARAGMILK ISIN: INE883N01014
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Parag Milk Foods Ltd belong to?
Parag Milk Foods Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is Parag Milk Foods Ltd a good quality company?
Parag Milk Foods Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Parag Milk Foods Ltd undervalued or overvalued?
Parag Milk Foods Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Parag Milk Foods Ltd a good buy now?
Parag Milk Foods Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Parag Milk Foods Ltd?
Parag Milk Foods Ltd revenue growth is 9.4% for FY-2025 , which is above its 5 year CAGR of 7.1% , indicating faster growth.
Q.2 Gross Profit margin of Parag Milk Foods Ltd?
Parag Milk Foods Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.5% for FY-2025 , which is above its 5 year median of 4.4% , indicating increasing margins.
Q.3 Operating Profit Margin of Parag Milk Foods Ltd?
Parag Milk Foods Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.31% for FY-2025 , which is in line with its 5 year median of 6.31% indicating stable margins.
Q.4 Net Profit Margin of Parag Milk Foods Ltd?
Parag Milk Foods Ltd Net Profit Margin is 3.46% for FY-2025 , is above with its 5 year median of 1.84%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 5.5 4.4
Operating Profit Margin 6.31 6.31
Net Profit Margin 3.46 1.84
Q.5 Return on Asset of Parag Milk Foods Ltd?
Parag Milk Foods Ltd Return on Asset is 6.07%, which is above its 5 year historical median of 3.48%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Parag Milk Foods Ltd?
Parag Milk Foods Ltd Return on equity is 12.28% for FY-2025 , which is above its historical median of 7.86%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Parag Milk Foods Ltd?
Parag Milk Foods Ltd Return on capital employed is 14.4% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Parag Milk Foods Ltd?
Parag Milk Foods Ltd Cash conversion cycle is 56 days, below its historical median of 64 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.86 1.86
ROE 12.28 7.86
ROCE 14.4 8.6
Cash Conversion Cycle 56 days 64 days
Q.9 Debt to Equity ratio of Parag Milk Foods Ltd?
Parag Milk Foods Ltd Debt-to-Equity ratio is 0.60 , which is above with the industry average of 0.49 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Parag Milk Foods Ltd?
Parag Milk Foods Ltd Debt to cash flow from operations is 2.9 , which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Parag Milk Foods Ltd?
Promoters hold 40.65% of the Parag Milk Foods Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Parag Milk Foods Ltd vs industry peers?
Parag Milk Foods Ltd revenue CAGR is 7.08% , compared to the industry median CAGR of 6.97% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 3,432.2 117.4
Gross Profit 188.8 5
Operating Profit 214 7
Net Profit 119 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.86 1.2
ROE 12.28 7.15
ROCE 14.4 10.41
Cash Conversion Cycle (days) 56.05 51

Valuation & price assessment

Q.1 Stock return of Parag Milk Foods Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 14.65% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 14.7% 39.1% 18.8%
Q.3 Valuation ratios of Parag Milk Foods Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 22.13 12.64 51.80
Price to Book 2.32 0.96 2.42
Price to Sales 0.75 0.39 1.42
EV to EBITDA 10.82 6.57 14.55

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